Family offices are responding to this year’s economic turbulence — from tumbling markets to President Trump’s trade wars — by maintaining patience and a disciplined focus on the long term. While some are taking advantage of volatility with opportunistic investments, most are sticking to their strategies.
Investor sentiment has “deteriorated very quickly” in recent weeks, said Michael Zeuner, managing partner of WE Family Offices. “Riding through that volatility because of a long-term focus on a long-term strategic allocation becomes very important,” he said, noting that his firm has been neutral on equity allocations while increasing its positions in commodities and natural resources.
The firm, Zeuner said, is “not getting an itchy trigger finger and the urge to sell out of stocks.”
WE’s senior investment manager, Sam Sudame, emphasized that “the best defense is diversification.”
Patience and discipline were also recommended by Coldstream’s chief investment officer, Bryan P. Shipley. “Headlines can amplify fear, but reacting impulsively often undermines the pursuit of long-term objectives,” he said. “Our strategy is to remain proactive, not reactive.”
Yet some family offices are holding off on deals until there is more clarity in the Trump administration’s policy direction. One firm’s chief investment officer told CNBC that it decided to pause a private investment with ties to Mexico, out of caution.
Other investors, however, have seized the opportunity to make strategic bets, adjusting portfolios to increase exposure to U.S. steel and aluminum producers as well as safer investments like bonds and gold. Some have also invested in European defense companies, as Germany and the EU have boosted military spending in recent weeks.
Billionaire Michael Platt’s London-based hedge-fund-turned-family-office, BlueCrest Capital Management, has gained nearly 15% this year by betting on currency markets, U.S. interest rate reversals and AI stocks, the Financial Times reported.
The New York-based Kaufman Family Office has ramped up its commercial real estate investments — committing over $250 million to new acquisitions, with a focus on stable, long-term assets.
In contrast, some overseas family offices are shifting away from U.S. investments. Srihari Kumar, a principal at his family’s Singapore-based firm, LionRock Capital, told the CONVERGE LIVE conference that his firm has reduced its U.S. allocation to 25% from 40% this year, potentially redirecting investments to China and Europe.